Current Market Trends:

• Home builders and contractors are seeing an increase in volume.
• Interest rates have slightly dropped, which is helping drive production, especially single-family homes.
• The availability of 30-year mortgages is contributing to growth in production.

Predictions for the Future:

• Some experts predict a "golden age" for home builders with a backlog of homes keeping them busy through 2024, 2025, and beyond.
• However, many industry analysts believe that despite the ramp-up in production, it may not be enough to ease the backlog of homes.

The Two Sides of Real Estate:

• Real estate has two primary components: the land (parcel) and the improvements (construction).
• Many older homes built in the 40s and 50s are now becoming outdated and may need complete remodels or new construction, especially in areas like South Florida.

Key Factors to Watch:

• Demand for remodeling or new homes is high, particularly in areas with older properties now becoming primary residences.
• Builders, contractors, subcontractors, and employees will all be impacted by these trends.

Looking Ahead:

• How much of this demand will filter down to contractors and subcontractors?
• Will there be enough qualified, skilled labor to meet the demand for home building and construction in the coming years?

What’s happening in your area?

• Share your thoughts on the future of home building and construction. Do you think there’s enough qualified labor to meet the demand?